Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow, capital expenditure, and free cash flow all weakened versus the prior quarter and the year-ago quarter. Revenue increased from the preceding quarter but decreased from the same quarter last year, while free cash flow margin declined in both comparisons.
- Revenue was higher than the previous quarter but lower than a year ago. Operating cash flow decreased both sequentially and year-over-year, and capital expenditure was stable versus the prior quarter but higher than the year-ago quarter. As a result, free cash flow and free cash flow margin were lower in both comparisons.
- Compared with the immediately preceding quarter, revenue improved while free cash flow margin weakened. Against the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$98.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$29.9B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
21.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-03-30 | $90.8B | $22.7B | $2.0B | $20.7B | 22.8% |
| 2024-06-29 | $85.8B | $28.9B | $2.2B | $26.7B | 31.1% |
| 2024-09-28 | $94.9B | $26.8B | $2.9B | $23.9B | 25.2% |
| 2024-12-28 | $124.3B | $29.9B | $2.9B | $27.0B | 21.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$64.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weaker Cash Conversion
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, while capital expenditure remained steady versus the prior quarter and increased year-over-year. This combination drove free cash flow lower in both comparisons.
Free cash flow margin fell versus the previous quarter and the same quarter last year, indicating a lower proportion of revenue converted to free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the previous quarter but lower than a year ago. Operating cash flow decreased both sequentially and year-over-year, and capital expenditure was stable versus the prior quarter but higher than the year-ago quarter. As a result, free cash flow and free cash flow margin were lower in both comparisons.
Compared with the immediately preceding quarter, revenue improved while free cash flow margin weakened. Against the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all declined.
Monitor the trend in free cash flow margin, which weakened both sequentially and year-over-year, as it combines revenue, cash generation, and capital spending.